Federal Bank has entered into a strategic partnership with Hedge Equities Ltd for providing Portfolio Investment Scheme (PIS) services to NRIs.
A formal agreement was executed here in which Jose K Mathew (EVP & Head Retail Business, Federal Bank) and Alex Babu (MD, Hedge Equities Ltd) exchanged the MoU announcing the tie-up.
Federal Bank is authorised by the RBI to issue permission letter to NRIs on behalf of the RBI to transact in secondary market. Currently, the Bank has PIS arrangement with eight partners and through these tie-ups, the bank facilitates NRI clients to invest in shares of Indian companies, in secondary market for purchase/sale of shares or convertible debentures on repatriable and non repatriable basis.
Jose K Mathew, EVP & Head Retail Business said that the Bank is competent to cater to all the needs of NRI clients to invest in Indian Stock market and offers PIS services with best in class service at extremely competitive rates. He also added that the Bank is in the process of doubling the PIS business in terms of number of accounts and total volume.
According to Alex Babu, Hedge is slowly but surely transiting to a wealth management company. Last one year, the company has registered growth in AUM by 100 per cent to Rs 750 crore. Mostly it is contributed by NRIs and the company expect this growth to continue for next couple of years. The Federal Bank PIS tie-up will definitely help smoothen the process and accelerate the growth trajectory